AIG has asked the government whether it should honor retention bonuses that have been previously agreed upon including $325 million that has been on hold for its financial products unit.
AIG allegedly asked the government-appointed in-charge Kenneth Feinberg to weigh in on the matter. AIG doesn’t technically need the government’s permission but after the scandal it created after previously shelling out millions in bonuses.
“Any time we write a check to anybody” it is highly scrutinized. We would want to feel comfortable that the government is comfortable with what we are doing,” an AIG official told the Post, speaking on condition of anonymity.
AIG sparked taxpayer outrage after it handed out millions in bonuses last March despite being kept afloat by the billions in bailout money. AIG argues that these do not fall under the governments’ jurisdiction since these were bonuses committed from last year.
One can say that some people just have no shame. No one wants to hear anyone receiving millions while every other tax payer’s job is being cut and every other household losing its home due to the crisis.
Source: CNN
